Gold is Below $ 1,700 After 9 Months!

Gold prices have fallen below $ 1,700 since the beginning of the week.

Gold is trading below $ 1,700 after 9 months. Gold prices have fallen below the level of $ 1,700 per ounce, losing more than 2 percent since the beginning of the week. Gram gold is squeezed between the rising USD/TL rate and the fall in global gold prices. Gold prices fell due to the impressions that FED Chairman Jerome Powell was not taking a strong enough stance against rising bond yields. Gram gold is squeezed between rising USD/TL rate and falling global gold prices. Yesterday, Powell said, “The Fed doesn't want to surprise people by reducing asset purchases. The erratic conditions in the markets are cause for concern. I will be worried that financial conditions will constantly tighten. The global low inflation environment will not change in the near future.” The 10-year US Treasury bond yield rose by 12 basis points to 1.57 percent due to the lack of strong enough messages about the bond markets in the speech. While gold last saw gold below $ 1700 in June 2020, the US Treasury bond interest rates were around 0.7-0.9 percent.

Oanda Senior Market Analyst Edward Moya said:

“Gold still seems dependent on the stimulus package by the Fed, and the Fed says it will not take new measures before financial conditions tighten or uneven market conditions occur. If the bond sales and US dollar rally continues, gold could drop by another $ 50 next week”

Ounce Gold

Gold prices are preparing to close for the third week in a row with the continuation of the upward trend in bond interest rates. Starting the week at $ 1,735, an ounce of gold tested the $ 1,690 level, losing more than 2 percent since Monday. Ounce of gold fell close to $ 30 after Jerome Powell's speech, trading at $ 1,692 at 07:59 am.

Gram Gold

Gram gold, priced in TL, follows both the dollar exchange rate and global gold prices in price movements. The USD/TL rate dropped to 7.52, after gaining 28 cents in value with the rising bond interest and climbing up to 7.58. USD/TL has gained around 1.25 percent since the beginning of the week. Despite the increase in USD/TL exhance rate, with the decline in global gold prices, gram gold prices are stuck in a horizontal course around 409 TL.